FHSA vs the Home Buyers' Plan: how they differ and how to use both
Quick summary
The FHSA lets you save for a first home, and a qualifying withdrawal is tax-free and does not need to be repaid. The Home Buyers' Plan lets you take up to $60,000 from your RRSP, which you repay over 15 years. The CRA says you can use both for the same home if you meet every condition at the time of each withdrawal. Next step: read the full FHSA guide.
Checked November 11, 2026. Main source: Canada Revenue Agency: Withdrawals and transfers out of your FHSAs (modified February 10, 2026, read November 11, 2026). See all 3 sources.
Key facts
- FHSA qualifying withdrawal
- Tax-free, and does not need to be repaid
- Source: CRA, modified February 10, 2026
- HBP withdrawal limit
- $60,000
- Source: CRA, modified February 17, 2026
- HBP repayment
- 15 years. For first withdrawals from 2026 to 2028, repayment starts in the fifth year after the withdrawal year
- Source: CRA, modified February 17, 2026
- FHSA saving limits
- Up to $40,000 saved, with an $8,000 annual limit
- Source: FCAC, modified October 20, 2025
FHSA and HBP side by side
| FHSA | Home Buyers' Plan (HBP) | |
|---|---|---|
| What it is | A registered account to save for a first home | A way to take money out of your RRSP to buy or build a home |
| Money back in? | Qualifying withdrawals do not need to be repaid | Yes. Repay over 15 years |
| Limits | Up to $40,000 saved, $8,000 a year (FCAC) | Currently $60,000 (CRA) |
| Tax on use | A qualifying withdrawal is tax-free | Money comes out of your RRSP. You repay it, and the CRA page does not give the yearly amount |
| Form | RC725, given to your FHSA issuer | T1036, Request to Withdraw Funds from an RRSP |
| Wait time | No minimum number of days money must stay in the FHSA | The page we read did not list one |
Sources: Canada Revenue Agency: Withdrawals and transfers out of your FHSAs (modified February 10, 2026, read November 11, 2026); Canada Revenue Agency: The Home Buyers' Plan (modified February 17, 2026, read November 11, 2026); Financial Consumer Agency of Canada: Buying a home (modified October 20, 2025, read November 11, 2026).
Rules for a qualifying FHSA withdrawal
The CRA says you must meet all of these:
- You have not owned a home you lived in as your main home in the current year, excluding the 30 days before the withdrawal, or in the previous 4 calendar years.
- You have a written agreement to buy or build a qualifying home, with the purchase or build finished before October 1 of the year after the withdrawal.
- You did not get the home more than 30 days before the withdrawal.
- You stay a resident of Canada until you get the home.
- You plan to live in it as your main home within 1 year of buying or building it.
- You fill out Form RC725 and give it to your FHSA issuer.
Source: Canada Revenue Agency: Withdrawals and transfers out of your FHSAs (modified February 10, 2026, read November 11, 2026).
What about the "90 day" rule?
People search for an FHSA 90 day rule. The CRA page we read does not mention one. It says there is no minimum number of days that money must stay in your FHSA, and it names a 30 day rule (you did not get the home more than 30 days before the withdrawal) and a 1 year rule (you plan to live in it within a year). If someone tells you about a different rule, ask your FHSA issuer or the CRA.
Source: Canada Revenue Agency: Withdrawals and transfers out of your FHSAs (modified February 10, 2026, read November 11, 2026).
Using both for the same home
The CRA says you can withdraw from your RRSP under the HBP and make a qualifying FHSA withdrawal for the same qualifying home, as long as you meet all conditions at the time of each withdrawal. A couple buying together can each use their own FHSA if both meet the conditions, says the CRA. You cannot cancel a qualifying FHSA withdrawal once it is made.
Sources: Canada Revenue Agency: Withdrawals and transfers out of your FHSAs (modified February 10, 2026, read November 11, 2026); Canada Revenue Agency: The Home Buyers' Plan (modified February 17, 2026, read November 11, 2026).
How HBP repayment works
The CRA says the repayment period is 15 years. For first withdrawals made from January 1, 2026 to December 31, 2028, the first repayment year is the fifth year after the withdrawal year. For example, a 2026 withdrawal has a first repayment year of 2031. The page does not state the yearly amount, so check your CRA account or the CRA's repayment page.
Source: Canada Revenue Agency: The Home Buyers' Plan (modified February 17, 2026, read November 11, 2026).
Questions people ask
Can I use the FHSA and the Home Buyers' Plan together?
Yes. The CRA says you can make an HBP withdrawal and a qualifying FHSA withdrawal for the same qualifying home, if you meet all conditions at the time of each withdrawal.
What is the Home Buyers' Plan limit?
The CRA says currently $60,000.
Do I repay an FHSA withdrawal?
No. The CRA says qualifying withdrawals do not need to be repaid.
How long do I have to repay the HBP?
15 years. For first withdrawals from January 1, 2026 to December 31, 2028, the first repayment year is the fifth year after the withdrawal year.
Is there an FHSA 90 day rule?
The CRA page we read does not mention one. It says there is no minimum holding period, and it names a 30 day and a 1 year rule.
What forms do I need?
Form RC725 for an FHSA qualifying withdrawal, given to your FHSA issuer. Form T1036 for an HBP withdrawal from your RRSP.
How much can I save in an FHSA?
The FCAC says up to $40,000, with an $8,000 annual limit.